Pro Medicus backs Echo IQ with $20 million as AI cardiology strategy takes shape

About Pro Medicus Ltd

Pro Medicus Ltd (ASX: PME) is a Melbourne-based healthcare technology company founded in 1983 that has grown into one of Australia’s most successful and closely watched technology businesses. The company’s flagship product, Visage 7, is a cloud-based enterprise medical imaging platform that provides mission-critical imaging software to major health systems, academic medical centres and integrated delivery networks, predominantly in the United States, as well as in Australia and Europe. Visage 7 operates on a transaction-based software-as-a-service model, where revenue is tied to the volume of imaging studies processed through the platform, creating a highly scalable and recurring revenue stream. For the first half of FY26 to December 2025, Pro Medicus reported revenue of $124.8 million, up 28.4% on the prior corresponding period, with underlying net profit after tax of $90.7 million, up 29.7%. In the full year to June 2025, the company reported revenue of approximately $213 million, up around 32%, and net profit after tax of approximately $115 million, up around 39%.

The agreement

The binding Heads of Agreement establishes two concurrent arrangements between Pro Medicus and Echo IQ. The first is a financing arrangement under which Pro Medicus will subscribe for $10 million of secured convertible notes in Echo IQ, with the security granted over all assets of Echo IQ and its subsidiaries, including specific security over Echo IQ’s aortic stenosis and heart failure algorithms. The second tranche of $10 million is available to Pro Medicus as an option, exercisable within 12 months of FDA clearance of EchoSolv HF, should that clearance be obtained. The financing leaves Echo IQ fully funded to support its US commercialisation activities.

The second strand of the arrangement is a proposed reseller agreement under which Pro Medicus would market and distribute Echo IQ’s EchoSolv products to its existing healthcare customer base. Pro Medicus CEO Dr Sam Hupert noted that the company is looking to offer its Visage 7 Cardiology customers the option of Echo IQ’s technology, and described the arrangement as consistent with Pro Medicus’s broader AI strategy of curating a suite of algorithms drawn from its own development, clinical partnerships and third-party sources. For Echo IQ, the reseller relationship provides a direct pathway into Pro Medicus’s established network of leading US health systems and academic medical centres.

Pro Medicus’s AI strategy and recent momentum

The Echo IQ agreement reflects a deliberate broadening of Pro Medicus’s product offering into cardiology and artificial intelligence at a time when the company’s core radiology imaging business is growing strongly. In late 2024, Pro Medicus secured a landmark $330 million, ten-year contract with Trinity Health, one of the largest US Catholic health systems. More recently, a seven-year, $90 million contract with Boston-based Beth Israel Lahey Health was announced in May 2026, covering 14 hospitals, while two further US agreements worth a combined $44 million were concluded in the same month, including a renewal and expansion with Allegheny Health Network incorporating Visage 7 Cardiology modules. Pro Medicus has also signed contracts with the University of Colorado ($170 million, ten years), University of Maryland Medical System, TidalHealth, BayCare and others in the current financial year, demonstrating a sustained pipeline of major US enterprise wins.

The company’s transaction-based model means revenue ramps as clients go live and volumes grow, providing highly predictable and recurring income. EBITDA margins have been reported at around 77%, reflecting the operating leverage of a software platform that scales with minimal incremental cost.

Echo IQ and EchoSolv

Echo IQ is a Sydney-based artificial intelligence and medical technology company that uses AI-driven algorithms and proprietary software to improve clinical decision-making in cardiology. Its EchoSolv platform includes algorithms for aortic stenosis detection and heart failure analysis, applied to echocardiogram data. The company has submitted EchoSolv HF to the US FDA and an outcome is expected in the near term. FDA clearance would unlock the second $10 million investment tranche from Pro Medicus and would represent a critical regulatory milestone ahead of broader US commercialisation. Echo IQ CEO Dustin Haines described the partnership as transformational for the company, providing both financial flexibility and access to Pro Medicus’s established US commercial infrastructure.

Conclusion

The agreement marks a considered step by Pro Medicus into the adjacent and fast-growing field of AI-powered cardiac diagnostics, combining financial investment with the commercial leverage of its Visage 7 customer network. For a company that has built its reputation on disciplined execution and long-term enterprise contracts, the Echo IQ arrangement follows the same logic: backing credible technology with genuine clinical utility and pairing it with a distribution pathway that reduces the commercialisation risk for both parties. The near-term trajectory will depend on the finalisation of definitive legal agreements, the outcome of Echo IQ’s FDA submission and the pace at which the reseller channel gains traction across Pro Medicus’s US hospital network.